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Aston Martin new model deliveries in focus as results loom

Published 27/10/2023, 11:02
© Reuters.  Aston Martin new model deliveries in focus as results loom

Proactive Investors - Aston Martin Lagonda Global Holdings PLC (LON:AML)’s ability to deliver a suite of new cars on time will be in focus in next Wednesday, 1 November’s third-quarter update.

Having previously said deliveries of pre-ordered new DB12 Coupe, sport and GT models would begin in the second half of the year, Wednesday’s results could update investors on how the rollout is going.

Porsche AG (ETR:P911_p) reassured that post-pandemic supply chain difficulties had finally eased this year in its own third-quarter results earlier this week.

Availability of intermediate parts and semiconductors had become more widespread as a result, Porsche said - a trend Aston Martin shareholders will likely hope the British brand has enjoyed itself.

Aston Martin has laid out plans to reach cash flow positivity next year, a fate AJ Bell Russ Mould analyst said partially rests in the hands of a successful and timely rollout of its new products.

“Cashflow could get a welcome boost” from the deliveries of new models, he said previously, given the likes of the DB12 Coupe and Sports/GT models were sold out before their official launch dates.

Deutsche Bank (ETR:DBKGn) analysts argued this high demand meant that Aston Martin would likely still enjoy strong pricing power through to the end of the year.

Given Porsche’s lower-than-anticipated margins, this could be another point of focus in Aston’s update.

Shares in the luxury automaker have climbed by over 30% so far this year, as Aston Martin has bounced back from the profit warnings of previous years through reports of narrowing losses in 2023.

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“It is ultimately cashflow and hopes that debt will start to fall that are really driving the share price,” Mould added.

Read more on Proactive Investors UK

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